You now need a down payment of over $400,000 for a home in Toronto

A minimum down payment of $359,441 will now be required to purchase a single-family home in the Greater Toronto Area (GTA). And if you’re looking to reside in Toronto proper, that number jumps to $414,798.

Last week the Toronto Regional Real Estate Board (TRREB) has released its latest figures for the GTA.

And, frankly, they’re so dismal for potential first-time home buyers in the increasingly inaccessible region that it’s understandable that they stop paying attention to them all together.

For those in the dark (perhaps blissfully), the GTA has had another month of double-digit price increases. The average home price in the area has officially soared to a hard-to-swallow $1,334,544, a 27.7% year-over-year increase and 7.3% increase. month to month.

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The average price of a single-family detached home in the GTA soared 31% to $1,797,203 overall, and officially hit the $2 million mark in the notoriously expensive city of Toronto, at $2,073 $989 (up 23%). Meanwhile, the average price for a semi-detached home in the GTA is now $1,358,415 (up 29.6%) and $1,499,489 in Toronto (up 14%).

The average total price for a townhouse in the GTA is now $1,121,641 (up 30.5%) and $1,131,809 in Toronto (up 22.8%). Finally, the average total price of a condo in the GTA reached $799,966 (up 24.6%) and $822,090 in Toronto (up 21.5%).

So how much will you need on the down payment front? We’ve broken it down for you (as far as the down payment goes, we can’t help you there):

Detached house in the Greater Toronto Area:

With 20% deposit: $359,441
With 25% deposit: $449,301
With 30% deposit: $539,161
With 35% deposit: $629,021

Detached house in Toronto:

With 20% deposit: $414,798
With 25% deposit: $518,497
With 30% deposit: $622,197
With 35% deposit: $725,896

Semi-detached house in the Greater Toronto Area:

With 20% deposit: $271,683
With 25% deposit: $339,604
With 30% deposit: $407,525
With 35% deposit: $475,445

Semi-detached house in Toronto:

With 20% deposit: $299,898
With 25% deposit: $374,872
With 30% deposit: $449,847
With 35% deposit: $524,821

Townhouse in the Greater Toronto Area:

With 20% deposit: $224,328
With 25% deposit: $280,410
With 30% deposit: $336,492
With 35% deposit: $392,574

Townhouse in Toronto:

With 20% deposit: $226,362
With 25% deposit: $282,952
With 30% deposit: $339,543
With 35% deposit: $396,133

Condo in GTA:

With 6.87% decrease: $54,997
With 10% deposit: $79,997
With 15% deposit: $119,995
With 20% deposit: $159,993

Condos in Toronto:

With 6.87% decrease: $57,209
With 10% deposit: $82,209
With 15% deposit: $123,314
With 20% deposit: $164,418

With these numbers, it’s no surprise that more and more people are turning to the parents’ bank to pay the deposit tabs. Let’s not forget that the pre-pandemic rental market — which was headed toward Manhattan — made it difficult for this down payment fund to grow significantly.

“We have seen a slight balance in the market so far this year, with sales falling more than new listings. However, with inventory remaining exceptionally low, it will take some time for the pace of price growth to slow” , says Jason Mercer, chief analyst at TRREB, “Look for a more moderate pace of price growth in the second half of 2022 as higher borrowing costs force some households to temporarily put their home purchase on hold as they reposition themselves in the market.”

So, the reality is that prices aren’t going to drop anytime soon.

With no signs of a bubble bursting in the future, the answer lies in increasing supply. While no one seems to agree on the best way to do this, the silver lining with the release of these stats is that all options are on the table to increase housing options – and quickly.

About Matthew R. Dailey

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